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HOUSTON, March 7, 2011 (GLOBE NEWSWIRE) -- The McGregor Area Community Development Corporation (McGregor Area CDC) received a $10,000 Partnership Grant Program (PGP) award through Amegy Bank of Texas (Amegy Bank) and the Federal Home Loan Bank of Dallas (FHLB Dallas) to assist with the costs of clearing two lots for new, single-family homes in the Riverside district of Houston, Texas.

McGregor Area CDC primarily focuses on the Riverside district, which is located about 3 miles south of downtown Houston, not far from the University of Houston and the medical district. Large areas of the neighborhood have fallen into disrepair, with many dilapidated buildings and run-down housing that impinge on the neighborhood's quality of life. President J. J. Smith at McGregor Area CDC said the neighborhood holds promise for new residents because of its central location and an abundance of relatively inexpensive vacant properties to construct new homes. He hopes the efforts of his organization will help restore the area to a vibrant and attractive neighborhood for families of all income levels.

"The neighborhood has been gradually declining for the past several decades as commercial and residential buildings decline and attract undesirable uses," said Mr. Smith. "Past efforts to bring in new businesses and residents to the neighborhood have had little success. We want to restore the area and attract new families and businesses. In order to do this, we rely on partners like Amegy Bank and FHLB Dallas to help provide financial resources so that we can do the necessary work and help those in need."

McGregor Area CDC purchases vacant and dilapidated housing and other buildings within the neighborhood, prepares the property for demolition, then constructs new, single-family housing for low- to moderate-income families.

Partnership grants are offered through FHLB Dallas's member institutions, such as Amegy Bank, and awarded on a first-come, first-served basis. The grants provide funding for operational needs of community-based organizations involved in affordable housing and community development. FHLB Dallas matches a member's cash contributions to a community-based organization of $500 up to $5,000 at a 3:1 ratio. Through its member institutions, FHLB Dallas awarded $225,000 in partnership grants in 2010, and will again offer $225,000 in PGP funds through its member institutions in 2011.

Brian Stoker, senior vice president CRA/community lending officer at Amegy Bank, said McGregor Area CDC has been a loyal customer for several years, and the PGP grant is the first time the organization has utilized grant funding through FHLB Dallas.

"McGregor Area CDC has an extremely good reputation in the Houston community for providing much needed, quality housing to an area that has been severely underserved," said Mr. Stoker. "The organization is particularly precise in targeting a population and providing the needed assistance. Through the FHLB Dallas partnership grant, Amegy Bank is proud to be a part of their efforts."

The lots have been cleared and are ready for new home construction. The grant funds helped with demolition efforts, as well as general operating expenses, so that new homes may be built where the dilapidated and vacant housing previously stood.

About the Federal Home Loan Bank of Dallas

The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $39.7 billion as of December 31, 2010, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.